What is SAP?

Feyza DERİNOĞLU
4 min readSep 5, 2018

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SAP is a German software company known for making Enterprise Resource Planning (ERP) system and founded around 1972 by five IBM engineers. SAP software allows organizations to manage business operations and generally refers to süite of modular applications will collect and integrate data from different aspects of the business.

What are SAP Modules?

SAP Modules

SAP modules can be categorized into Functional Modules and Technical Modules. These functional and technical modules are closely coupled.

SAP Financial Accounting (FI)

SAP FI is one of the most important modules in SAP and deals in managing financial transactions within enterprises. It’s used for external reporting, General Ledger(GL), Account Receivables, Tax configuration, Account Payable, profit and lost statements and Asset Management with user-defined chart of accounts.

The important sub-modules of Financial Accounting are as follows

· General Ledger (GL)

· Accounts Payable (AP)

· Accounts Receivable (AR)

· Asset Accounting (AA)

· Travel Management (TM)

· Withholding Tax (TDS)

· Bank and Cash Management

· Budgeting and Monitoring

· Fund Management (FM)

· Treasury Management (TM)

SAP Controlling (CO)

SAP CO module helps to optimize business costs. It involves methods to view and organize costs that are required for financial reporting. The controlling module provides information to management which is used for is used for making future plans, for monitoring the various business operations.

The important sub-modules of Controlling are as follows

· Profitability Analysis (CO-PA)

· Cost Center Accounting (CCA)

· Profit Center Accounting

· Product Costing

· Periodic Allocations

SAP Material Management (MM)

MM provides a way to manage materials in a organization’s integrated to supply chain management, sales and delivery warehouse management, production and planning, Master data, Account Determination and valuation of Material, Material Requirement (MRP), Invoice Verification etc.

· Purchasing

· Inventory Management

· Purchase Orders

· Invoice Verification

· Inventory valuation

SAP Sales and Distribution (SD)

This module is used by organizations to support sales and distribution activities of products and services, starting from analyse to order and then ending with delivery.

· Sales Order Processing and Monitoring

· Shipping

· Billing

· Credit Mnagement

· Pricing and Discounts

SAP Production Planning (PP)

SAP PP module is specially designed for production planning and management. It consists of master data, system configuration and transaction in order to complete successfully the plan procedure for production.

· Production Planning

· Production Order Processing

· Materials Requirements Planning (MRP)

· Capacity Requirements Planning (CRP)

SAP Quality Management (QM)

This module is integrated with other SAP modules like MM, PP,and PM.QM module is used to perform quality functions such as quality planning, quality assurance, quality control, at several stages such as incoming material stage, manuc-facturing process stage and after production.

· Incoming Inspection

· Process ınspection

· Quality notifications

SAP Project System (PS)

SAP PS module is used for planning and managing projects. It has severaş tools that allows the Project management process such as cost and planning budget, scheduling and services.

· Project Planning

· Project Costing

· Project Monitoring

SAP Human Resources (HR / HCM)

SAP HR manages all functions from the beginning from hiring an employee to its final termination in organization.

· Payroll Accounting

· Personnel Administration

· Planning Budget

SAP Plant Maintenance (PM)

In SAP PM module we can execute automatic repairs and facilitate maintenance requests in a organization. It will allow us to record problems in SAP system, plan labor and material activities and record and settle the cost.

· Maintenance Management

· Breakdown Maintenance

· Notification

· Approval and planning of Work Order

· Scheduling and Releasing Work Order

SAP Customer Relationship Management (CRM)

SAP CRM deals with Customer related processes. CRM is designed to centralize the data related to all the Customers associated with an organization. SAP CRM system is used to support all customer focused business areas like service, marketing, sales, etc.

SAP Business Intelligence (BI)

SAP BI is leading & analyzing data warehousing and reporting tool.It helps to convert raw data into information. It allows companies to foresee the outcome and do extensive planning. It’s all about business being able to take right decisions at the right time.

SAP Business Warehouse (BW)

SAP Business Warehouse integrates data from different sources, transforms and consolidates the data. Every business activity generates data and this data is used by a company’s all areas of business, ıt helps them make a better decision.

SAP Advanced Business Application Programming (ABAP)

SAP ABAP is one of the most important programming module in SAP. SAP system provides several predefined reports and interface. We can create customized reports and interfaces as per business requirements.

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Feyza DERİNOĞLU
Feyza DERİNOĞLU

Written by Feyza DERİNOĞLU

SAP Tutorials - Industrial Engineer & Software Developer & Management İnformation System and Engineering 👩🏻‍💻

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